The demand curve for a product slopes downward and to the right because:
a. total utility decreases as more of the product is consumed.
b. total utility derived from both, the product and its substitutes is the same.
c. marginal utility of the product diminishes as more of the product is consumed.
d. there are no substitutes for the product.
e. when the price falls, the income effect causes consumers to buy less of the product.
c
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Using expansionary policies to combat a recession would
A) decrease discretionary spending. B) increase federal revenue. C) increase a budget surplus. D) increase a budget deficit.
The growth rate of real GDP per capita in Mexico was negative in which of the following time periods?
A) 1980-1989 B) 1990-1999 C) 2000-2014 D) all of the above
A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left
To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives fail to solve either moral hazard and adverse selection problems with employees